Bahrain’s economy bounced back despite the repercussions of the February-March 2011 unrest, expanding by 3.2 per cent in fixed prices in the fourth quarter of last year, compared with the same period in 2010, said a report.
Bahrain’s non-oil economic sectors recorded a growth of 2.6 per cent in the fourth quarter, said the fourth quarterly accounts report for 2011by Central Informatics Organisation (CIO).
Releasing the report, CIO chairman Dr Mohammed Al Amer said government services, telecommunications, social services, retail banks, electricity and water also recorded solid growth.
The national economy also grew by 14.5 per cent in current prices in the same period, benefiting from skyrocketing oil prices in the international markets.
In comparison, the economy expanded by 17.8 per cent in current prices last year, compared with 2010.
Other sectors grew slowly due to the low domestic and global demand. These include real estate, external banking units, hotels and other tourism-related activities.
In terms of fixed prices, Bahrain’s gross domestic product (GDP) grew by 2.2 per cent last year compared with 2010. The oil-related sectors expanded by 3.4 per cent while non-oil sectors grew by 2.1 per cent last year.
‘These results are satisfactory if we take into account challenges which Bahrain faced last year,’ Dr Al Amer said, adding that the short-term economic outlook was positive.
Oil revenues exceeded all expectations last year which boosted the public budget. Oil-based economic activities expanded by 7.6 per cent, reaping the dividends of increasing crude oil output.
Dr Al Amer praised Central Bank of Bahrain for its strong supervision of the financial sector and the adoption of balanced monetary policies.
He also lauded the government’s sound policies which help preserve economic stability and reduce its exposure to pressures.